Energy News

E.ON cuts gas prices by 3.3%

Friday 3 July, 2009

By becca.talbot@consumerchoices.co.uk

Energy giant E.ON has surprised the market by cutting its standard tariff gas prices by 3.3%.

E.ON (www.eonenergy.com) said about 1.8 million of its customers in the UK will see their gas bills cut by £25 a year.

The 3.3% cut, which will come into effect from tomorrow (Saturday 4 July), comes after E.ON reported an 18% rise in quarterly profits.

The German-owned energy giant said it was “committed to offering competitive prices at all times and delivering on its promises.”

Gareth Kloet, head of utilities at Confused.com, said of the cut: “It’s just a drop in the ocean. It’s about £2 less each month for customers using an average amount of gas, so it’s not going to make a huge difference to consumers struggling with their household budgets.”

Gas prepayment meter customers will also benefit, as E.ON said it was scrapping the standing charge for the meters.

The removal of the standing charge follows a pledge by the energy supplier to ditch it late last year.

Britain’s “big six” energy suppliers came under fire recently over their treatment of prepayment customers amid claims they have overcharged those using prepayment meters.

Last week the National Housing Federation said households using energy prepayment meters have been overcharged by nearly £500million over the past three years.

Energy experts are now predicting Britain’s biggest suppliers to make further gas and electricity reductions throughout the summer and autumn.

Chris Eagle, commercial manager at EnergyChoices.co.uk said: “While the price cut from E.ON is a welcome move, it does little to counteract the massive price rises that customers suffered last year.”

“In the light of the recent price changes, and in particular if your household is on a standard energy tariff, it is worth comparing energy prices to see if you could save money on your bills by switching to a cheaper deal,” he added.